The NP249 transfer case, all time 4x4, is an amazing transfer case. Only bad thing about it is the viscous coupler. They tend to go out around 130k miles, sometimes they'll last longer...or shorter. Its a $300 part. Most people just swap in a NP242 or NP231 case that has 2wd as an option. I love both of my NP249s though.
PS, its a ZJ. Not an XJ. XJs are Cherokees, ZJs are Grand Cherokees.
94 ZJ Laredo. 5.2 Crate engine. 6in JKS SA Lift. 33in Destination MTs. ARB Front Bumper.